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Setanta faces administration


David

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ONE of the UK's biggest sports broadcasters, Setanta, could be forced into administration this week after failing to make payments due on TV rights.

It is understood that administrators are on standby to act for the Irish firm unless it can agree a last-minute rescue with investors.

The Irish firm failed to pay £3 million to the Scottish Premier League (SPL) last week as the final part of a £13 million contract for the broadcasting rights of last season.

The league has had to pay member clubs their share of the cash from its own funds, and awaits Setanta to repay this today.

Many clubs, particularly the smaller ones, rely on the revenue from television rights to bolster their income and in some circumstances this can represent a quarter of their turnover.

Setanta has also been seeking to cut the price of its current £125m deal with the SPL, which is due to start in 2011.

The company has about 1.2 million customers but this is well below the 1.9 million needed to break even.

Charles Barnett, a football business analyst with accountants PKF, said that the SPL and its members now faced severe pressure.

"The SPL has until mid-August to find a replacement broadcaster. We're in the middle of a credit crunch and one has to assume that it clearly needs a deal, so the boot will be on the broadcasters' foot," he explained.

Mr Barnett said he did not think there would be many companies looking to bid for the SPL rights, and that any resulting deal was likely to be considerably smaller than the current Setanta one.

This, he said, would be to the detriment of the smaller clubs who have previously viewed Setanta's cash as "cast iron".

Mr Barnett said it was likely the cash problems would result in smaller squad sizes.

He added, however, that the SPL might attempt to recoup the cash difference through legal action against Setanta.

A spokesman for the SPL said last night that what emerged from Setanta in the coming 24 hours would be key.

"This is a live issue. There were a range of different discussions this weekend and we'll see what emerges from that, but we will continue to act in the best interests of our member clubs."

If Setanta fails to raise more cash from investors and falls into administration, it could trigger a fire-sale of TV rights which, in addition to the SPL and club channels for Rangers and Celtic, include the England national team's away qualifiers and FA Cup matches.

The FA is said to have rebuffed attempts by Setanta to reduce its £150m bill by 25 per cent.

There is speculation Setanta may default on the SPL rights as way of freeing up cash to pay for the more lucrative FA rights. It also produces both dedicated channels for Rangers and Celtic.

Setanta also has a deal with the Barclays Premier League, who are awaiting a £35 million payment later this month.

ITV and Setanta won the contract from the Football Association in 2007 before the recession hit, compromising advertising revenues.

Neither the administrators Deloitte nor Setanta were available for comment yesterday.

[url=http://news.scotsman.com/entertainment/Setanta-faces-final-whistle-and.5342624.jp]http://news.scotsman.com/entertainment/Set...-and.5342624.jp

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Obviously wasn't greedy enough if there going into admin, if they do go bust and Sky Sports snap up the rights to the games they had I will probably subscribe again to Sky Sports as long as the price doesn't go up again. Having to pay one is enough but for both is a joke.

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Setanta 'is on brink of collapse'

[url=http://news.bbc.co.uk/1/hi/business/8090633.stm]http://news.bbc.co.uk/1/hi/business/8090633.stm

Setanta faces administration "within days" unless backers provide more funds to pay £30m it owes to the English Premier League, reports have suggested.

The broadcaster has already failed to pay the Scottish Premier League £3m it owes in television rights money.

Setanta, which also shows cricket, golf and rugby union, has about 1.2 million subscribers, but is losing up to £100m a year, analysts say.

Deloitte is set to step in to run the firm if it goes into administration.

:cool:

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They got greedy with all the Ipl cricket they chucked on.The consequecnes of this will be dire for the conference clubs and those in scotland who rely heavily on the money.Maybe they should go back to their traditional sports showing such as gaelic football which theyve always done.

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their talking money! which mug would subscribe in the close season?

and there's still no news I don't think.

I heard that the Prem league has given them until friday to cough up or they'll sell the games to the highest bidders.

Who'd want to bid for Blackburn V Bolton, scottish footie, and non league?

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Finito

Setanta Sports Great Britain

Important Customer Message

Setanta Sports Customers from England, Wales, Scotland, Isle of Man and Channel Islands, please be advised that it is with great regret that Setanta GB is no longer trading.

Setanta Sports is still operating in the Republic of Ireland and Northern Ireland only. Customers from ROI and NI should go to [url=http://www.setanta.com/ie]www.setanta.com/ie for more information.

Setanta Sport Limited

Setanta Transmissions (UK) Limited

Setanta Sports S.a.r.l

(All In Administration)

(together "the Companies")

On 23 June 2009, Neville Kahn, Lee Manning and Nick Edwards were appointed Joint Administrators of the Companies and now manage the affairs, business and property of Setanta Sport Limited and Setanta Transmissions (UK) Limited and Setanta Sports S.a.r.l.. The Joint Administrators contract as agents of the Companies and without personal liability

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